Top Analyst Upgrades Tesla, Citing Robotaxi Potential Despite Mixed Wall Street Views

Tesla shares have rebounded by 24% over the past three months, despite recent challenges including declining electric vehicle deliveries and negative headlines. Notably, top investor JR Research, previously a skeptic, has upgraded Tesla to Buy, highlighting the company's potential in autonomous transport as a key driver for future growth.

JR Research stated that Tesla's valuation should be viewed in light of its ability to achieve its robotaxi objectives, rather than current electric vehicle sales. The investor pointed to Tesla's scalable neural network approach and large EV fleet as advantages over competitors like Alphabet's Waymo, suggesting these factors could enable Tesla to quickly expand its robotaxi operations. JR Research projected that if Tesla secures 30% of the robotaxi market, its operating income could increase by 32% to 53% by 2030. "Occasionally missing quarterly targets or putting out deliveries decline may no longer hamper the stock that substantially if the robotaxi pivot continues to unfold successfully," JR Research said.

Despite this optimistic outlook, Wall Street analysts remain divided, with 13 Buy, 13 Hold, and 9 Sell ratings, resulting in a Hold consensus. The average 12-month price target for Tesla is $293.38, indicating a potential 6% downside from current levels.